The demand for affordable housing continues to grow, with over 1.3 million households in England being on a waitlist for social housing and the average waiting time for a three-bed social home in Cornwall is now reportedly 15.9 years! The UK currently also has an estimated shortfall of 6.5 million homes compared to similar European countries. It’s also worth noting that in 2023-2024, around 20,560 social homes were lost (through Right to Buy and demolitions etc) and only 19,910 new social homes were delivered, creating a net loss of about 650 homes.
The fact that we need to build more houses is quite clear but suitable (and financially viable) land for development can be somewhat scarce. For social housing providers, brownfield sites (being previously developed land that is not currently in use) represent both a challenge and a significant opportunity.
Brownfield development isn’t just a local planning preference, it’s currently a national priority. Central and local government policies favour the recycling of these sites to reduce pressure on greenbelt land and make efficient use of existing infrastructure. For social housing providers, this could create a compelling case to focus on brownfield opportunities.
Benefits of Brownfield Development:
- Whilst obtaining planning permission can be a hurdle, local authorities are under pressure to demonstrate how they are unlocking brownfield land. Partnering up could strengthen the likelihood of planning success.
- Transforming derelict, ugly and underutilised areas improves neighbourhoods, help boost local economies, and enhance the experience for existing residents.
- Redevelopment supports regeneration and allows construction of the housing we desperately need whilst also minimising urban sprawl and negative impact on natural landscapes and habitats, helping to preserve greenfield spaces crucial for environmental sustainability and biodiversity.
- There are various government-backed schemes and incentives designed specifically to encourage the regeneration of these sites, mitigating some of the financial risks associated with environmental cleanup etc, substantially reducing the initial costs and making brownfield development viable.
- Beyond the immediate delivery of homes, brownfield regeneration often acts as a catalyst for wider community investment in transport, services, and local business.
- Research suggests there are over 27,000 hectares of brownfield land (across approximately 23,000 sites) that is lying unused, with capacity for around 1.2 million homes. However, only 45% of those potential housing units have planning permission.
Overcoming Challenges of Brownfield:
Of course, brownfield development comes with its complexities. Contamination, site constraints, and higher upfront costs can deter investment. However, with the right approach, these challenges are manageable.
- Early site assessment is essential. Detailed due diligence, including environmental surveys, reduces uncertainty and helps secure funding.
- Brownfield sites can require innovative design solutions to accommodate irregular plots or existing infrastructure.
- Community engagement is key. Involving residents early increases positivity, particularly where a site has a difficult legacy.
- Mainstream lenders may be wary until appropriate (and potentially expensive) remediation works have been satisfactorily carried out and evidenced.
- Restrictive covenants (conditions limiting the use of the land) may need resolving. For example, a restrictive covenant might prevent the land from being used for residential purposes where it has historically been limited to industrial purposes. However, there are usually ways to overcome such title issues provided that these are identified early on.
Seizing the Opportunity:
For social housing providers, brownfield land should not be seen as a last resort but perhaps as a strategic priority. With the right planning, partnerships and vision, these sites can create the opportunity to deliver much-needed homes with the added benefit of revitalising communities.
The key to success with such developments can be found in early engagement of specialist professionals to investigate and advise on the suitability and prospects of a site. If you have a potential site you’d like to discuss, please do get in touch on 0345 450 5558 or enquiries@stephens-scown.co.uk